WalMart closes deal for 51% stake in Massmart

WalMart announced on Monday that the company had completed its investment for a 51% stake in Massmart Holdings (MSM) for R148 per Massmart ordinary share.

In what was the most eagerly anticipated decision in South African retail history, the Competition Tribunal gave the nod on the R16.5-billion mega-deal, adding a few conditions for good measure.

The antitrust authority said the companies must uphold existing labour agreements for three years, ensure that no jobs are cut for two years and added that it accepted the condition proposed by the merging companies to set up a R100-million supplier development fund.

Notably, the tribunal shied away from local procurement targets. Government and labour unions were concerned that the acquisition would lead to job losses and hurt local procurement.

“With the closing of our investment in Massmart, we are very excited about our entry into SA as well as the broader African continent. As we do in all of our other markets, we will work to serve underserved customers, to help people save money to live better.


“Just as important, we will grow in this part of the world, and as we do, we expect to create many jobs and support local suppliers. We have a global track record of working directly with small farmers, boosting their income and helping them become more sustainable, and we look forward to bringing those practices to SA,” said Doug McMillon, president and CE of WalMart International.

Massmart will continue to trade on the Johannesburg Stock Exchange to provide Massmart shareholders with the ability to participate in the growth opportunity of the combined entity.

WalMart has asked Massmart chairperson Mark Lamberti to remain as chairperson, while the board will be further strengthened by WalMart executives, including McMillon, Jeff Davis, senior vice-president of finance and treasury, and JP Suarez, senior vice-president for international business development.

McMillon said the group was committed to partnering with government and key stakeholders.

The Massmart group includes Game, Dion Wired, Makro, Builders Warehouse and Masscash. — I-Net Bridge

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Zeenat Moorad
Zeenat Moorad works from Johannesburg, South Africa. Markets, finance&business. Mostly. Once editor, journalist, columnist-Financial Mail&Business Day,Views all my own, I’d follow me, Currently @Discovery_SA Zeenat Moorad has over 4602 followers on Twitter.

Related stories

Advertising

Subscribers only

How lottery execs received dubious payments through a private company

The National Lottery Commission is being investigated by the SIU for alleged corruption and maladministration, including suspicious payments made to senior NLC employees between 2016 and 2017

Pandemic hobbles learners’ futures

South African schools have yet to open for the 2021 academic year and experts are sounding the alarm over lost learning time, especially in the crucial grades one and 12

More top stories

Zuma, Zondo play the waiting game

The former president says he will talk once the courts have ruled, but the head of the state capture inquiry appears resigned to letting the clock run out as the commission's deadline nears

Disinformation harms health and democracy

Conspiracy theorists abuse emotive topics to suck the air out of legitimate debate and further their own sinister agendas

Uganda: ‘I have never seen this much tear-gas in an...

Counting was slow across Uganda as a result of the internet shutdown, which affected some of the biometric machines used to validate voter registrations.

No way out for Thales in arms deal case, court...

The arms manufacturer has argued that there was no evidence to show that it was aware of hundreds of indirect payments to Jacob Zuma, but the court was not convinced.
Advertising

press releases

Loading latest Press Releases…